Backgrounder

Judicial review surge: A verdict on flawed lawmaking

The quality of Indonesia's lawmaking is under growing scrutiny. The skyrocketing number of judicial review petitions should serve as a wake-up call to reform the legislative process. Meaningful public participation, in particular, remains a crucial element that must be strengthened to ensure laws are drafted with prudence, accountability and constitutional soundness.

Prabowo inaugurates long-awaited Balikpapan refinery upgrade

President Prabowo Subianto inaugurated Pertamina's RDMP Balikpapan megaproject on Monday, Jan. 12, 2026, marking the completion of a long-delayed strategic oil refinery upgrade. The project, with an investment value of US$7.4 billion (Rp123 trillion), is expected to raise production capacity to 360,000 barrels per day (bpd) from 260,000 bpd and enable Indonesia to stop importing diesel fuel as early as the second quarter of this year.

Edition

January 9, 2026

Disaster response tests government’s openness to criticism

The protracted disaster response in parts of Sumatra has increasingly become a focal point of public criticism, testing not only the state's operational capacity but also its willingness to engage with dissent. Rather than treating criticism as an essential component of democratic accountability, the government has often responded defensively, a posture that risks deepening public distrust at a time when confidence in state institutions is critical.

A fiscal blind spot: Transparency concerns cloud 2026 budget

Indonesia entered 2026 with an unusual fiscal blind spot. In the first week of the new year, the State Budget (APBN) 2026 Law had yet to be made publicly available, only appearing on the same day the Finance Ministry released its report on the 2025 state budget performance. More strikingly, Presidential Regulation (Perpres) No. 118/2025, which details the APBN and operationalizes the budget, has yet to surface at all.

Edition

December 19, 2025

When law enforcers place themselves above the Constitution

Rather than safeguarding justice, Indonesia's legal instruments are increasingly being bent to serve institutional interests. The standoff between the Constitutional Court (MK) and the National Police over the assignment of active officers to civilian posts exposes not merely regulatory inconsistency, but a deeper disregard for constitutional authority.

DHE policy revised again, but gains to foreign reserves remain elusive

Indonesia's natural resource DHE policy has entered its third revision after repeated attempts failed to significantly bolster foreign exchange reserves or deepen onshore foreign currency liquidity. The latest amendment relaxes the mandatory rupiah conversion requirement from 100 percent to 50 percent and requires DHE placement in Himbara banks. While intended to ease pressure on exporters, the relaxation raises questions over whether locking DHE onshore can be effective in the long run.

Edition

December 12, 2025

Army undergoes massive expansion despite absence of real external threats

The Army is creating 750 new battalions of combat troops in the next four years to ensure presence in every district nationwide, but in the absence of a credible explanation of where the new external threats are coming from, the plan raises speculations about the real motive.

Sumatra’s flood aftermath and the consequences of fiscal neglect

Grief has engulfed Sumatra. Flash floods and landslides have devastated the provinces of Aceh, North Sumatra and West Sumatra, leaving behind not only the ruins of homes and infrastructure but also the deepening realities of hunger, displacement and profound uncertainty. Yet the government's decision to slash disaster funding to its lowest level in years is now testing its ability to help the affected rebuild their lives.